MarketAxess Launches Leveraged Loan Trading Platform

The new platform helps tap into a growing demand for leveraged loans, featuring several new capabilities for users.

MarketAxess Holdings Inc. (Nasdaq: MKTX), an operator of electronic trading platform for fixed-income securities, has launched a new electronic trading platform for leveraged loans, helping tap into a growing market, according to a MarketAxess statement.

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The new platform caters exclusively to leveraged loans, amidst a healthy uptick in trading volumes during 2016. Over a YoY basis, this market has been fueled by a steady demand, with more and more users seeking a viable medium for trading. MarketAxess’ platform is one of the first client-to-multi-dealer electronic trading platforms available to market participants, helping institutional users utilize deeper liquidity and price discovery.

The group’s new leveraged loan platform features a number of features in MarketAxess’ inaugural foray into the asset class. This includes the deployment of a request-for-quote model, highlighted single-item loan trading. Moreover, the platform relies on unique search functions that help streamline loan searches by LX number, or issuer name.

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Finally, the platform also features Straight-through-processing (STP) integration and connectivity, which grants full trade automation and a comprehensive trade activity log. Such attributes are instrumental for market participants opting to trade leveraged loans, given the need for increased transparency and risk management needs.

According to Sandy White, High Yield and Leveraged Loan Product Manager, MarketAxess, in a recent statement on the launch, “There is an increasing demand for access to leveraged loans trading in what has traditionally been an opaque and underserved area of the market. We saw an opportunity to bridge that gap with our technology and bring greater efficiency and transparency to leveraged loan trading.”

“The launch is a natural extension of our high yield trading capabilities and underscores our commitment to providing a unique marketplace for institutional investors and dealers to facilitate trades with greater confidence, transparency and speed,” reiterated White.

The development follows after a recent expansion of MarketAxess’ product offering, which saw an extension of its capabilities for municipal bonds, including its Muni Offerings.

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